The government’s announcements that it intends to help the credit union sector in the UK have been welcomed by the price comparison company Moneysupermarket.com.
According to the web-based business, families will have a better chance of dealing with their debt management problems if they can access credit through unions rather than regular company lenders.
“Cheap debt is a thing of the past, with many Brits finding it increasingly difficult to be accepted for any form of credit,” a statement from Moneysupermaket.com read.
“Therefore, the government’s suggestion that it may make it easier for families to access credit via credit unions from next year is a step in the right direction.”
However, the price comparison firm did note that credit unions have a history of “financial instability” that has resulted in losses for individuals and families involved.
Howard Archer from the Global Insight research firm recently predicted that levels of distressed borrowing would increase as the year goes on and more people struggle to deal with their debt management problems.
By Giles Stevenson